It doesn’t matter where you conduct business. Whether you own your building, lease a building, have an office, etc., commercial property insurance is essential. It’s one of the core coverage types under a business owners policy (BOP).
What exactly does it cover? It is an insurance that protects a company’s property AND assets such as equipment. Protection goes from water damage, fire damage, explosions, theft, vandalism, and so forth. The “water damage” part means busted pipes, not from actual flooding. All the external fixtures, such as outdoor signs and fences, are protected as well.
General, basic business insurance might not cover your property. It only protects you from lawsuits from third parties who become injured on your property. Keep this in mind when you are looking for quotes. Any policy you get includes protection for your business property. Your expenses will be covered if the property is damaged or if any theft occurs.
How much is it going to cost? There are varying factors with commercial property insurance, just like any other type of insurance. Some of these factors include location, occupancy, construction (types of materials). Other factors are proximity to the nearest police station and fire department and whether or not you have any installed security.
Commercial Property Insurance Rates
The rate also depends on the insurance company itself, and how much importance it puts on the above criteria. Also, expect a background check on your claims history. If you are running your business from your home, does your current homeowner’s insurance cover office equipment? Be sure to inform them that you plan to convert part of your home into an office and recommend additional coverage. Would it be cheaper to have that added to your homeowner’s policy? Maybe purchase commercial property insurance from another provider?
Don’t forget about electronic data. Suppose you have tons of sensitive information stored on a computer or in the cloud. In that case, commercial insurance must offer protection from any computer harm. Such harm includes cyber theft, fraud, plagiarism and copyright allegations, data loss, etc.
In short, you’ll need insurance to cover any potential interruption of computer operations and lost business income. You never know when something unexpected might occur that will prevent you from conducting business as usual.
Where can you get the best commercial property insurance for your needs? First, identify what your business needs, and then look for a policy that includes what you need – or as close to it as possible. Hiscox Insurance is an excellent place to start. They offer fair, affordable business insurance policies and services.